Building services and installation company TopBuild (NYSE:BLD) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
TopBuild missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.37 billion, up 3.6% year on year. It was a slower quarter for the company, with full-year EBITDA and revenue guidance missing analysts’ expectations.
Is TopBuild a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting TopBuild’s revenue to grow 2.5% year on year to $1.32 billion, in line with the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TopBuild has missed Wall Street’s revenue estimates four times over the last two years.
Looking at TopBuild’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 9.2%, and Taylor Morrison Home reported revenues up 16.7%, topping estimates by 9.5%. Champion Homes traded up 13.5% following the results while Taylor Morrison Home was also up 2.6%.
Read our full analysis of Champion Homes’s results here and Taylor Morrison Home’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the home builders stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.8% on average over the last month. TopBuild is down 12.8% during the same time and is heading into earnings with an average analyst price target of $423.64 (compared to the current share price of $303.78).
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